Reply to I predict one top school will be all-scholarship in next 5 years.

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[quote=Anonymous] [/quote]

because they have a mission? or they should pretend to have a mission? or they want to get ahead of the US people and US government asking why they get to be a NFP hedge fund with tax advantages with a small college attached that charges 90k a year?

their endowment has grown 12% a year for last 10 years. that's over 4 billion.

most NFPs feel okay drawing down 4% a year.  leaves growth.  for princeton that would like 1.5billion alone. not counting alumni contributions and the rest. tax advantaged!

paying for all the full pay would be 150 million. It's really not defensible that these schools charge tuition. [/quote]

Does not matter.  As long as there is a long list of students clamoring to attend for full pay (and there is with a single digit acceptance rate), someone will step up and pay.  Why would any school not collect tuition?   Just because you think it should be free, doesn't mean it will be.  [b]They are a business[/b], and the supply is great, so they will charge the 40%+ that are full pay the full amount[/quote]

This is incorrect.  The only colleges that are "businesses" are the for-profit scams like the one our former president ran.  Colleges cannot make "profit".  They can only have a positive CNA (contribution to net assets) which they invest and as mentioned by PPs, earns a ton more money each year and is then reinvested again and again and again.  They do not have shareholders and even though their employees may be well paid, their salaries are scrutinized more closely than businesses so they can't just give everyone large bonuses to unload the cash.  They are also running out of physical space to build in their current locations.  So the question is solid:  what is the point of them just sitting on piles of cash and continuing to collect tuition?  As poster above said, they have a mission and the funds to achieve the mission.  Continuing to charge tuition is unnecessary.[/quote]

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